Cabcharge Australia Limited (CAB) operates a national charge facility for the payment of taxi fare and related business surcharge services without using cash. Through its associate company, ComfortDelgro Cabcharge Pty Ltd, CAB also provides bus and coach services to customers predominantly in Australia.
Key Points

• CAB currently have a very strong industry position, with approximately 97% of Australian taxis operating the Cabcharge Fareway EFTPOS System
• CAB have come under scrutiny from the ACCC for misuse of market power, and are facing increasing competition in the credit card payment market
• Profitability has been decreasing year on year for the previous five years
• Both gearing and intangibles have been increasing year on year for the previous five years
• Operating cash flow has been soft when compared to reported profit in recent years
• Key directors have been selling portions of their personal holdings in each of the last two financial years
• We have an upward bias on our Required Return (RR) for CAB
• The board of CAB suffered their first strike on the remuneration report tabled at the 2011 AGM
• The price has tracked back to be marginally in value after being extremely overpriced in 2006 and 2007.

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